It’s exciting to start your own business, but it’s also tough to ramp up a new venture—and turning it into a successful, sustainable enterprise can be even more challenging.
SMB Group research shows that small business owners and decision makers rank attracting new customers and growing revenue as their top two business challenges. While it’s only natural to focus on building and growing the business, it’s all too common to neglect another critical make-or-break factor: cash flow, or the money that moves in and out of your business.
Having enough cash in reserve is critical to sustaining the business over the long haul. Cash reserves serve as a safety net—providing funds to draw on to cover monthly rent, salary and other ongoing expenses when business is slow.
Yet 60% of business owners have faced cash flow issues. And most small businesses only have enough cash on hand to support 27 days of typical outflows—potentially jeopardizing the business should a disruption occur.
In fact, according to the U.S. Small Business Administration (SBA) cites inadequate cash reserves and/or running out of money as a top reason that startups fail.
If you want to get—and keep—your business on a cash flow positive track—check out this report (sponsored by Intuit), “What Small Businesses Need to Know to Ease the Cash flow Crunch,” which discusses the steps you can take to fix current cash flow problems, strategies to improve cash flow going forward, and tips from other small business owners!
© SMB Group 2019
Source: Laurie McCabe’s Blog